BMGT364 Project 4: Controlling

BMGT 364 Project 4 (Week 7) – Controlling

Project 4 is due on Tuesday of Week 7 at 11:59 p.m. eastern time.

Purpose

In this project, you will understand the importance of the control function in a manufacturing business. You will compare actual performance with desired production standards, measure progress toward company goals, and address deviations in performance through corrective action.

Outcome Met by Completing This Assignment

Develop measures and assess outcomes against plans and standards to improve organizational effectiveness.

How to Set Up the Paper

Create a Word or Rich Text Format (RTF) document that is double-spaced using 12-point font. The final product will be 5-6 pages in length, excluding the title and reference pages.
Create a title page with a title, date, course number and section, your name, and the instructor’s name.

SCENARIO

The following chart displays the results of the first year’s production of the, Lacks Tracks Cycles, an electric-powered chopper-style motorcycle produced by Lacks Tracks Cycles to compete with Harley-Davidson’s Electra Glide. The metrics table below was created from data supplied by Lacks Tracks Cycles five (5) plants. The purpose of the table is to provide data for management to decide what controls and actions are needed to increase production efficiency.

You recently joined the Lacks Tracks Cycles’ headquarters staff as a quality assurance associate. Your manager has requested you to analyze the first year’s motorcycle production results. This information will be used by management to evaluate and improve overall production efficiency.

Lacks Tracks Cycles is known for producing high-quality products at reasonable prices. They plan to compete against Harley’s top-end model by developing superior production efficiency that will allow them to price significantly below Harley Davidson’s Electra Glide model.

The chart below lists the desired production standards and the actual production metrics for each stage of the electric motorcycle’s manufacturing process that must be completed to determine the overall production efficiency at each of Lacks Tracks Cycles’ five (5) production facilities.

A comparison of the production standard to the actual production outcomes using all the relevant metrics allows management to determine which of its facilities is the most efficient producer of the electric motorcycle. This knowledge will help Lacks Tracks Cycles’ management team to determine what controls need to be put into place at their various production plants to match the production efficiency of their most efficient plant. More efficiency means higher production at lower per unit (cycle) costs.
Metrics Standard Maryland Delaware New Jersey Texas Alaska
Total Cost to Manufacture (per unit) 13,500 15,250 14,100 12,750 16,000 14,250
Manufacturing Cycle Time (time to complete a single vehicle – in hours) 15 18 16 12 12 14
Yield (percentage of cars produced to specifications first time without rework) 98% 99% 97% 96.50% 97.50% 95.15%
Defective Rate/Recall Rate 2% 1% 3% 3.50% 2.50% 4.85%
Scrap Rate 2% 3% 4% 2.50% 2% 1.90%
Average Production Downtime 0.50% 1% 1.50% 0.75% 0.50% 0.75%
Training Time (hours per month) 8 6 3 5 7 4
Shipping Problems/Damage (per 10,000 units) 1 2 4 2 1 3
Safety Incident per Employee 1.50% 2.25% 0.75% 3% 2% 1.90%
Number of units manufactured per year 45,000 43,000 27,000 42,500 48,000 45,500
Utilization Rate (Capacity rate facility is utilizing during available production time) 81.82% 78.18% 49.09% 77.27% 87.27% 82.73%

Use only the BOLDED centered and left-justified headings to write your paper.

Introduction

Write an Introduction paragraph. The introduction paragraph is the first paragraph of the paper and will describe to the reader the intent of the paper, explaining the main points covered in the paper. This intent should be understood before reading the remainder of the paper so the reader knows exactly what is being covered in the paper. The introduction is often written after the paper is completed. (Use in-text citations, as needed, and include the references in the Reference section.)

The body of the paper will cover the following:

Controls

Explain what control means in a business setting. (Use headings below and in-text citations as required.)
Explain why Lacks Tracks must be concerned with the actual production metrics at its plants. (Use headings below and in-text citations as required.)

Control Defined

Importance of Lacks Tracks Production Metrics

Standard Specifications

Compare the metrics table standards to the actual performance outcomes at each of the five (5) plants and explain your findings for each plant. (Use headings below and in-text citations, as appropriate.)
Identify the four (4) most important and common deviations from the standards among the plants and explain why this data is important to Lacks Tracks management. (Use headings below and in-text citations, as appropriate.)
Using course materials, identify and explain two (2) types of controls that could be used by Lacks Tracks management to attempt to correct the deviations from standards at its plants. (Use headings below and in-text citations, as appropriate.)

Metrics Table Plant Performance Comparisons

Four Most Significant Deviations

Two Recommended Controls

Total Quality Management

Explain why implementing a Total Quality Management (TQM) program could improve operational efficiency at Lacks Tracks. (Use in-text citations, as appropriate.)

Conclusion

Create a concluding paragraph. The conclusion paragraph highlights the major findings covered in the paper. (Use in-text citations, as appropriate.)

References

Review the Paper

Read the paper to ensure all required elements are present.

The following are specific requirements that you will follow. Use the checklist to mark off that you have followed each specific requirement.

Checklist

Specific Project Requirements

Proofread your paper.

Read and use the grading rubric while completing the paper to ensure all requirements are met to lead to the highest possible grade.

Third-person writing is required. Third-person means that there are no words such as “I, me, my, we, or us” (first-person writing), nor is there use of “you or your” (second-person writing). If uncertain how to write in the third person, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person.

Contractions are not used in business writing, so do not use them.

Paraphrase and do not use direct quotations. Paraphrase means you do not use more than four consecutive words from a source document. Removing quotation marks and citing is inappropriate. Instead, put a passage from a source document into your own words and attribute the passage to the source document. There should be no passages with quotation marks. Using more than four consecutive words from a source document would require direct quotation marks. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade.

You are expected to use the research course materials to develop the basis for your analysis and support your reasoning. There should be a robust use of the course material. The material used from a source document must be cited and referenced. A reference can only be included in your Reference list if used for an in-text citation.

Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.

You may not use books in completing this problem set unless they are part of the course material. Also, you cannot use as references a dictionary, Wikipedia, Investopedia, or similar sources.

Provide the page or paragraph number in every in-text citation. Since the eBook does not have page numbers, you must include the chapter title, section heading, and paragraph number.

For citations using a video, you must provide the minutes and second of the cited material.

Introduction

The purpose of this paper is to analyze the production metrics of Lacks Tracks Cycles’ first year of electric motorcycle production. The analysis is important to determine the overall production efficiency and to identify the most efficient production facility. This paper will explain what control means in a business setting and why Lacks Tracks must be concerned with the actual production metrics at its plants.

Controls

Control Defined

In a business setting, control refers to the process of monitoring and measuring performance to ensure that organizational goals and objectives are achieved efficiently and effectively. The control function involves comparing actual performance against predetermined standards, identifying deviations from these standards, and taking corrective action to address these deviations.

Importance of Lacks Tracks Production Metrics

Lacks Tracks must be concerned with the actual production metrics at its plants because it enables management to identify areas of inefficiency and take corrective action to increase production efficiency. By comparing the actual production metrics to the desired production standards, management can determine which of its facilities is the most efficient producer of the electric motorcycle. This knowledge will help Lacks Tracks’ management team determine what controls need to be put into place at their various production plants to match the production efficiency of their most efficient plant. Increased efficiency means higher production at lower per unit (cycle) costs.

Standard Specifications

Comparing the metrics table standards to the actual performance outcomes at each of the five (5) plants, we can see that:

Maryland’s total cost to manufacture is $15,250, which is $750 higher than the desired production standard of $13,500. Their manufacturing cycle time is 18 hours, which is 3 hours higher than the desired production standard of 15 hours. Their yield is 99%, which is higher than the desired production standard of 98%. Their defective rate/recall rate is 1%, which is lower than the desired production standard of 2%. Their scrap rate is 3%, which is higher than the desired production standard of 2%. Their average production downtime is 1%, which is higher than the desired production standard of 0.5%. Their training time is 6 hours per month, which is 2 hours lower than the desired production standard of 8 hours. Their shipping problems/damage is 2, which is 1 higher than the desired production standard of 1. Their safety incident per employee is 2.25%, which is 0.75% higher than the desired production standard of 1.5%. Their utilization rate is 78.18%, which is 3.64% lower than the desired production standard of 81.82%.
Delaware’s total cost to manufacture is $14,100, which is $600 lower than the desired production standard of $13,500. Their manufacturing cycle time is 16 hours, which is the same as the desired production standard of 15 hours. Their yield is 97%, which is lower than the desired production standard of 98%. Their defective rate/recall rate is 3%, which is 1% higher than the desired production standard of 2%. Their scrap rate is 4%, which is 2% higher than the desired production standard of 2%. Their average production downtime is 1.5%, which is 1% higher than the desired production standard of 0.5%. Their training time is 3 hours per month, which is 5 hours lower than the desired production standard of 8 hours. Their shipping problems/damage is 4, which is 3 higher than the desired production standard of 1. Their safety incident per employee is 0.75%, which is 0.75% lower than the desired production standard of 1.5%. Their utilization rate is 49.09%, which is 32.73% lower than the Metrics Performance

The metrics table standards and actual performance outcomes indicate that Lacks Tracks Cycles needs to address the production inefficiencies at all five (5) of its plants to meet its desired production goals. The Maryland plant, for instance, has a total cost to manufacture per unit of $15,250, which is $750 more than the standard of $13,500. The Delaware plant has the highest defective rate/recall rate of 3%, which is 1% higher than the standard of 2%. The New Jersey plant has the highest scrap rate of 4%, which is 2% higher than the standard of 2%. The Texas plant has the highest average production downtime of 1.5%, which is 1% higher than the standard of 0.5%. Finally, the Alaska plant has the highest shipping problems/damage rate of 3, which is two times higher than the standard of 1 per 10,000 units.

The most important and common deviations from the standards among the plants are the higher total cost to manufacture per unit, the higher defective rate/recall rate, the higher scrap rate, and the higher average production downtime. This data is important to Lacks Tracks management because it helps them to identify where improvements can be made to increase production efficiency and reduce per unit costs. Addressing these issues will enable Lacks Tracks to price their electric motorcycle lower than Harley-Davidson’s Electra Glide model, thus increasing their market share and profitability.

Controls to Address Deviations from Standards

To address the deviations from standards at its plants, Lacks Tracks management can use different types of controls. Two types of controls that could be used are feedforward and feedback controls. Feedforward controls involve identifying and addressing issues before they occur by taking preventive measures. One way Lacks Tracks management could use feedforward control is by implementing a proactive maintenance program that identifies potential issues and addresses them before they become problems. This program could involve scheduling regular maintenance checks and inspections to identify and address any production issues before they cause downtime or production inefficiencies.

Feedback controls, on the other hand, involve identifying and addressing issues after they occur. One feedback control that Lacks Tracks management could use is a quality control program. This program could involve regular inspections of finished products to identify any defects or issues that need to be addressed. Additionally, it could involve a customer feedback system that allows customers to provide feedback on the product’s quality and identify any issues that need to be addressed. By using feedforward and feedback controls, Lacks Tracks management can improve production efficiency, reduce costs, and improve the quality of their electric motorcycle.

Conclusion

In conclusion, the control function is essential in a manufacturing business. By comparing actual performance with desired production standards and addressing deviations in performance through corrective action, businesses can improve organizational effectiveness. Lacks Tracks Cycles must be concerned with the actual production metrics at its plants to identify areas for improvement and increase production efficiency. By analyzing the metrics table standards and actual performance outcomes, Lacks Tracks management can identify areas for improvement and implement controls to address deviations from standards. Implementing feedforward and feedback controls, such as a proactive maintenance program and quality control program, can help Lacks Tracks management to improve production efficiency, reduce costs, and increase the quality of their electric motorcycle.

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